This Weekly Financial Markets Update reviews the top market headlines: Markets React to Operation Epic Fury, Services Sector Activity Hits Fresh High in February, February Jobs Report Disappoints
  • The S&P 500 index fell 2.0% last week
  • The ISM Services Index increased to 56.1% in February
  • The U.S economy lost 92,000 jobs in February

Top Three Market Headlines

Markets React to Operation Epic Fury: Investors spent last week weighing the implications of military operations against Iran amid uncertainty surrounding the conflict's duration. Unexpectedly, global oil prices surged, with the Brent crude index jumping 28% on the week; gold, meanwhile, remained relatively flat. In the capital markets, impacts on the bellwether S&P 500 index were fairly constrained through much of the week before a 1.3% decline on Friday pushed the index to a 2.0% weekly loss. The VIX measure of implied market volatility rose 28% to 26.40, though this remained short of its 44.0 reading in April 2025 amid tariff turmoil. International stocks endured the harshest market reaction, with the MSCI EAFE and Emerging Markets indices declining 6.7% and 6.9%, respectively, on the week.

Services Sector Activity Hits Fresh High in February: The Institute for Supply Management (ISM) reported last week that its ISM Services Index, based on surveys of business executives, registered 56.1% for the month of February. This was the highest reading since July 2022 and marked the 20th consecutive month the index exceeded the 50% threshold that distinguishes expansion of business activity from contraction. Conditions in the manufacturing sector of the economy also continued trending up in February, as the ISM Manufacturing Index came in at 52.4% following a 52.6% reading in January.

February Jobs Report Disappoints: The U.S. Department of Labor reported Friday that the U.S. economy lost 92,000 jobs in February, measurably below economists' expectations for 50,000 additions. At the same time, previously announced gains over the prior two months were revised down by 69,000. The February shortfall follows an increase in January of 126,000 jobs. Employment in health care, information, and the federal government led the weak jobs report, with the sectors losing 49,000 jobs combined. Meanwhile, the unemployment rate ticked upward to 4.4% from 4.3% in the prior month.

As of March 6, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -3.70% 0.43% 0.43% 21.33%
S&P 500 -1.99% -1.32% -1.32% 18.96%
Russell 2000 -4.03% 1.92% 1.92% 23.86%
MSCI EAFE -6.73% 2.68% 2.68% 21.19%
MSCI Emerging Markets -6.88% 6.94% 6.94% 35.41%
FTSE NAREIT Equity -2.22% 8.73% 8.73% 9.58%
Bloomberg Commodity 8.13% 20.65% 20.65% 31.07%
Bloomberg U.S. Aggregate -0.96% 0.77% 0.77% 5.73%

ISM 3/2/2026 & 3/4/2026 U.S. Bureau of Labor Statistics 3/6/2026. Data from Morningstar Direct and FactSet. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.